Indian fintech giant Paytm has announced a strategic partnership with US-based AI search startup Perplexity, aiming to enhance the user experience on its platform through an AI-integrated search feature. This collaboration will enable real-time access to financial insights and localized information, making it easier for users to make informed financial decisions.

AI-Powered Search to Enhance Financial Literacy

According to Paytm's official exchange filing, the new AI-driven search feature will allow users to access real-time financial updates, banking insights, and expense management tips in their regional languages. The company believes this will contribute to increasing financial literacy by providing easy-to-understand information on banking, investments, and expenditure management.

Aravind Srinivas, the CEO of Perplexity, emphasized that their AI technology is designed to deliver accurate and trustworthy real-time information, helping users make better financial decisions.

What is Perplexity?

Perplexity is an AI-powered search engine startup founded in 2022 by IIT Madras graduate Aravind Srinivas. He previously worked as an AI researcher at OpenAI. The startup aims to compete with traditional search engines like Google by providing real-time, accurate, and contextual search results using artificial intelligence.

Perplexity has gained significant attention in the tech world, securing $500 million in funding recently. The company has previously partnered with TripAdvisor for similar AI-driven search capabilities.

Paytm’s Financial Performance & Challenges

Paytm's parent company, One 97 Communications, reported a net loss of ₹208 crore in the third quarter of FY 2024-25 (October-December 2024). This was a slight improvement from the ₹220 crore loss reported in the same quarter of the previous year.

However, the company’s revenue declined by 36%, dropping to ₹1,828 crore from ₹2,850 crore in the previous year’s third quarter.

Regulatory Challenges: RBI’s Ban on Paytm Payments Bank

In early 2024, the Reserve Bank of India (RBI) imposed restrictions on Paytm Payments Bank, prohibiting it from onboarding new UPI users due to regulatory compliance issues. Since Paytm’s UPI services were powered by its Payments Bank, the company had to partner with other banks to continue offering UPI services.

Despite these regulatory challenges, Paytm remains focused on innovation and user engagement. The partnership with Perplexity AI is seen as a strategic move to enhance its digital ecosystem and regain market confidence.

Conclusion

With AI-powered search integration, Paytm aims to redefine user experience by offering real-time insights in regional languages. This partnership is expected to help users make informed financial decisions while strengthening Paytm’s position in the fintech industry. As AI continues to transform the digital space, this collaboration could mark a significant shift in how fintech platforms engage with their users.